Yet another find by George Kirikos, the domain name RH.com which was recently purchased Restoration Hardware and reported by Elliotsblog.com a month ago, was bought for $304,000
The finding is from a Sec filing by the company.
According to the filing “In July 2012, the Company purchased the domain rights to the web address “www.rh.com” for $0.3 million”
In the cash flow statement its shown as (304) (in thousands), so that’s $304,000
A real bargain for a two letter domain name especially for a publicly traded company.
At the end of the day no better or worse than FB.com which we all know Facebook shelled out for $8.5 million for.
Fits their image nicely and the added eliteness/authority they’ll gain from it will be worth much more than what they paid.
it’s a fair price. by my domain evaluation model it’s worth somewhere between 284,000 and 312,000. great deal for both parties.
Under your domain evaluation model what is FB.com worth?
Wow, that’s a lot lower than I thought it would be.
It is also a peculiar number, maybe $4,000 was what was paid in fees with whomever Restoration Hardware used for escrow services. $4K is about 1.3% of $300,000. Way above what escrow.com would have charged, but maybe they used another service.
@berkins… that’s an unfair question ’cause i already know what zuckerberg gave up for it. i know what he paid for facebook. ask me sometin’ i don’t know… like what’s he gonna do if he can’t find a way to monetize mobile. (just kidding… please don’t ask me that.)
Interesting find by George! Looks like they are getting in shape for their IPO and/or their steadily increasing sales. On September 19, 2012, WSJ reported : “plans for an initial public offering of up to $150 million in common stock as the home-furnishings retailer looks to raise funds to repay debt. ”
source: http://online.wsj.com/article/SB10000872396390444032404578006761005011602.html
I’m summarizing here, but I think Catterton Partners bought Restoration Hardware for $179m, and now 4 years later, after 10 quarters of increased sales, and earnings now hitting $33m/year on rev of $1B, they are raising almost what they paid for it. Nice work. Truly amazing to see a turn around, and even better to see it then topped with an awesome domain purchase.
They know that RestorationHardware.com at 17 characters longer than RH.com is way, way, too untypeable for the majority of online shoppers. Nice to see that they have it in place for the Christmas buying season!
I wonder if the seller knew they were selling to Restoration Hardware. Seems they were a Rental Homes Classifieds site (according to Arhive’s July 15, 2011 screencapture)
Seller: Savoyent / Chuck Garvin
http://www.domaintools.com/research/whois-history/?page=details&domain=rh.com&date=2012-09-03
A BARGAIN ! As you say, compare it with FB.com at $8.5 Million –
Good sale overall!